Trump: Thinking about next Fed chair

Trump: Thinking about next Fed chair

Title: Trump: Thinking about Next Fed Chair

In the wake of President Donald Trump's latest call for the Federal Reserve to slash interest rates by a full percentage point, the future of monetary policy and the Federal Reserve Chair's position are once again in the spotlight. Trump, who has consistently urged Federal Reserve Chairman Jerome Powell to lower rates, made his latest demand following a better-than-expected jobs report for May [1].

The jobs report, which showed U.S. hiring rose by 139,000, exceeded expectations and provided some relief to the economy. However, Trump argued that other major central banks have already lowered their rates, and the Fed should follow suit. The European Central Bank (ECB), for instance, has lowered its benchmark rate eight times since last June, totaling a 2 percentage point reduction [2].

Trump's latest push for lower rates came despite the Fed's recent history of rate cuts. During President Joe Biden's final year in office, the Fed lowered rates by a full percentage point in total. The last single rate cut of that magnitude occurred in March 2020 to address the economic fallout from the Covid-19 pandemic [1]. Additionally, financial markets currently price in a near-zero chance of a rate cut after the Fed's next meeting on June 17-18 [2].

Powell, who has been the target of Trump's criticism, has maintained a cautious stance on rate cuts, citing concerns about higher inflation. The Fed has been concerned that Trump's tariff policies could lead to a spike in inflation, which has been a more pressing risk than a slowing labor market [2].

The debate over the future of the Fed Chair's position is also heating up. Trump's latest demand for rate cuts comes as he considers the possibility of a new Fed Chair appointment. The president has not explicitly stated his intentions regarding Powell's position but has been critical of his policies [3].

In conclusion, Trump's latest push for lower interest rates and his consideration of a new Fed Chair appointment highlight the ongoing tension between the White House and the Federal Reserve. The future of monetary policy and the Federal Reserve's leadership will continue to be a critical issue as the economy navigates through uncertainty and changing political dynamics.

References:
[1] https://www.cnbc.com/2025/06/06/trump-powell-fed-rates.html
[2] https://m.economictimes.com/news/international/us/donald-trump-wants-interest-rates-cut-by-full-point-will-fed-chair-jerome-powell-follow-presidents-order-before-september/articleshow/121678753.cms
[3] https://finance.yahoo.com/news/trump-blasts-fed-chair-again-171252242.html